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Re-Organization for Management

According to common management theory, organization is one of the five elements of management. (The other four are planning, staffing, directing and controlling.)

The dictionary defines an organization as "a number of individuals systematically united for some end of work" and to organize as "to bring into systematic relation as parts of a whole." These are in accord with our basic definition of organization for management.

When things are not going as they should at a business, someone will often jokingly say, "Tomorrow, we have to get organized." Unfortunately, that tomorrow rarely comes.

If managers ever find themselves losing control of events, they might view any attempts at better control as attempts to organize. This could include introducing new or improved management-control accounting, office procedures, or sales planning and control. However, implementing these systems alone does not constitute organization.

Because organization can mean different things to different people, a business must first understand what concept is involved with the term. Ensuring that understanding is a main responsibility of Legacy’s executive analyst during the diagnostic review.

Planning is essential to effective business operation. An organization is formed by the relationship between management and the employees who execute management’s direction. In other words, the organization is a conduit for action, and it should provide two-way flow. Planned input should have planned output. When actual results vary from planned results, management must take action to correct the deviation.

Installation of an Organization for Management program requires that the client plan and that he or she formulate goals and objectives to determine how to measure accomplishments or shortcomings. A profit, expense and sales forecast will provide a fiscal goal. Objectives in other areas can be set in order for short- and long-term planning that will assist the business as well.

Helping the client in this effort is part of our Re-Organization for Management project, which involves:

defining positions such as production, marketing and accounting that are required for a business to operate properly;

identifying and assigning authority and responsibility to those positions;

relating those functions to the management positions that will control them; and

developing personnel with the managerial expertise to fill the positions and carry out the functions.